Stablecoin issuer Agora has chosen Wormhole to serve as the interoperability hub for their stablecoin, AUSD.
In order to grow the stablecoin over different blockchain networks, the cryptocurrency firm Agora—which garnered millions of dollars in funding led by Dragonfly—has chosen the cross-chain protocol Wormhole as its primary interoperability supplier for AUSD.
AUSD, which is presently available on Ethereum, Avalanche, and Sui, intends to spread throughout all other blockchain networks, including Base, BNB Chain, Solana, Aptos, and Arbitrum, according to a blog post published by Wormhole on Wednesday, October 9.
Through the collaboration, Agora intends to use Wormhole’s non-transferable token framework to protect the intrinsic qualities of tokens on various chains, hence reducing liquidity fragmentation.
As AUSD gears up for future growth, Solana will be the next stop. The integration also seeks to reduce transaction costs and enhance transparency.
The partnership, according to Agora’s CEO and co-founder Nick van Eck, “reduces barriers standing in the way of accessing, transferring, and using AUSD.”
Issued by Agora, AUSD is a centralized stablecoin, backed 1:1 by U.S. dollars and managed by finance giant VanEck.
The announcement coincides with Wormhole’s ongoing popularity among institutional investors due to its collaboration with Securitize, which extended multichain capabilities to tokenized Treasury notes.
Nick van Eck, Drake Evans, and Joe McGrady founded Agora in 2024 to create a stablecoin network that is accessible to anyone.
Dragonfly led the $12 million in funding that the business secured in April to support the launch of its stablecoin platform, with a focus on regulatory compliance.
Other well-known investors, such as Consensys, Galaxy, and Wintermute Ventures, participated in the investment round.
